On 14 June 2016 the Commission for Energy Regulation
("CER"), the Irish energy regulator,
published a decision paper on MEC Security Policy Amendments (the
"Decision Paper"). The Decision Paper
outlines the CER's decision on the Systems Operator's
("SO") proposals on the administration
of Capacity Bonds under grid connection agreements.
Background
Under the existing regime, generators are required to provide
security of €25,000 per MW of their Maximum Export Capacity
("MEC"). This must be provided one
month prior to the energisation date of their project or two years
from the Consents Issue Date, whichever is the earliest.
Generators currently then have one year from energisation to
export at least 95% of their MEC for a duration of at least 30
minutes and for this to be confirmed in a test by the SOs (known as
"Capacity Test B"). An Operational Certificate issued by
the SOs is conditional on the generator achieving its Capacity
Tests and passing the Grid Code
